Johnson & Johnson To Defend Baby-Powder Lawsuits In Court: Report

The controversial Johnson & Johnson JNJ bankruptcy strategy will face a fresh trial to urge a judge to allow it to use the bankruptcy process to resolve claims that its talc-based products caused cancer.

• More than 38,000 plaintiffs have alleged the Company's talc products caused ovarian cancer and mesothelioma, deadly cancer linked to asbestos exposure. 
• J&J maintains that its consumer talc products are safe and confirmed through several tests to be asbestos-free.
• The Company in October placed the talc claims into a newly-created entity called LTL Management LLC, which filed for bankruptcy protection in North Carolina.
• Also See: US Judge Allows Johnson & Johnson To Split Talc Powder Liabilities Into New Company.
• JNJ adopted "Texas two-step," which allows companies to split in two, with one part of the Company keeping valuable assets while the other includes liabilities.
• U.S. Bankruptcy Judge Michael Kaplan has scheduled a five-day trial to consider a bid by committees representing the plaintiffs to dismiss the bankruptcy case.
• J&J has proposed giving $2 billion to LTL to put into a trust to compensate the 38,000 current plaintiffs and future claimants. 
• Related: Supreme Court Denies Johnson & Johnson's Challenge to Baby Powder Cancer Judgement.
• Price Action: JNJ shares traded .11% lower at $167.52 premarket on the last check Monday.